Find amount of goodwill impairment loss should recognize

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Reference no: EM13335540

In 2011, Alliant Corporation acquired Centerpoint Inc. for $506 million, of which $86 million was allocated to goodwill. At the end of 2013, management has provided the following information for a required goodwill impairment test:

 Fair value of Centerpoint, Inc. $ 378 million
  Fair value of Centerpoint's net assets (excluding goodwill)
334 million
  Book value of Centerpoint's net assets (including goodwill)
420 million

Alliant prepares its financial statements according to IFRS, and Centerpoint is considered a cash-generating unit. Assume that Centerpoint's fair value of $378 million approximates fair value less costs to sell and that the present value of Centerpoint's estimated future cash flows is $383 million.

Determine the amount of goodwill impairment loss Alliant should recognize.

Reference no: EM13335540

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